We’ve been talking about the factors that will make your home sell during a recession. Some of these things you can change, although most of them you can not. It is important to have a clear idea of what your home will do in this market. This way, you can make better decisions about listing or not listing your home to sell.
If you missed the previous articles, you can click here: Will Your Home Sell in a Recession? Location Matters and Will Your Home Sell in a Recession? Sidewalks and Septic.
Now let’s talk about durability. Durability is the factor that will have your home sell no matter what the market is doing. Is your home the best one on the block? It will sell quickly, right? Well, maybe not. You have to look at the neighborhood as a whole. Better homes bring up the the value of homes that aren’t as nice. This is called the progression principal. By the same token, Nearby homes that are lesser will subtract value from the nicer homes. If your modest home is surrounded by mansions, you’ll find your home has an enhanced value. It will attract people who wish to move in to the area, but who may not be up for a larger more impressive home. You don’t want to have to sell the nicest home on the block.
Where does your home fall in type? Single family homes do best in a down turned market. Condos tend to have the least value. This is due to two factors. The first is that when a market is hot, such as it was just a short while ago, builders put up a lot of condos because they are quick and easy, and they offer home buyers a way to get in to a home without competing with increasingly expensive homes. When the market downturns, there tends to be a glut of condos for sale. The second reason is that most buyers want single family homes. A single family home that is priced in the middle of the market will do well.
Next up, we will talk about how trends may effect your home sale.
Mary Ann Romans writes about everything related to saving money in the Frugal Blog, technology in the Computing Blog, and creating a home in the Home Blog. You can read more of her articles by clicking here.
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